• Registered Users :
  • 155434
  • Current Active Users :
  • 96264

News INCOME TAX

  • Aug 10, 2018
  • I-T department to scrutinise 0.35% of returns filed for FY18

    In what would make the income tax department less intrusive, it would scrutinise only 0.35% of returns filed for the last fiscal, down from 1% earlier. While the department would repose faith in taxpayers, the enforcement action would be severe on tax evaders, Sushil Chandra, chairman of the Central Board of Direct Taxes (CBDT), said on Thursday. “We have increased the tax base and have full faith on taxpayers. Last year, we got 6.86 crore returns and I have picked up only 0.35% cases for scrutiny. This means that 99.65% of the returns filed can be at peace,” Chandra said at an event oraganised by Assocham.

  • Aug 08, 2018
  • Over 200,000 'non-filers' filed ITR in FY18, paid Rs 64-bn tax: Govt

    As many as 209,000 'non-filers' filed income tax returns in last fiscal and paid taxes worth Rs 64.16 billion, Minister of State for Finance Shiv Pratap Shukla said on Tuesday. In a written reply to a question in the Rajya Sabha, he said the I-T department issued notices to 3,04,000 persons who had deposited cash of more than Rs 1 million post demonetisation but had not filed their return of income till the due date. "As a result, returns were filed by 2,09,000 of such identified non-filers who have paid self assessment tax of Rs 64.16 billion," Shukla said.

  • Jul 31, 2018
  • Assessee has to prove tax exemption: Supreme Court

    The onus of proving a tax exemption where the guidelines aren’t clear would be on the assessee, and he cannot claim the benefit of any such ambiguity in provisions, a constitution bench of the Supreme Court said. Experts said the ruling would completely alter precedents as also the principle of law where the assessee was given the benefit of doubt. This will have significant ramifications for taxpayers and influence decision on past as well as future litigation over tax disputes, they said.

  • Jul 27, 2018
  • Income tax return filing deadline extended to August 31

    The finance ministry in a tweet has announced the extension of income tax return (ITR) filing deadline by a month to August 31, 2018. The tweet says "Upon consideration of the matter, the Central Board of Direct Taxes (CBDT) extends the ‘Due Date’ for filing of Income Tax Returns from 31st July, 2018 to 31st August, 2018 in respect of the said categories of taxpayers." Until last assessment year (AY) there was no penalty for filing belated income tax returns. However, this penalty is applicable from AY 2018-19. A new section 234F was inserted by the government in the Income Tax Act. As per this section, an individual would have to pay a fee of up to Rs 10,000 for filing income tax return after the due dates specified in section 139(1) of the Act.

  • Jul 23, 2018
  • I-T department to collect over Rs 60,000 crore from Andhra Pradesh, Telangana alone in FY19

    The Income Tax Department today said it is set to collect Rs 60,845 crores during this financial year against Rs 49,775 crores mopped up last yer from Andhra Pradesh and Telangana. Principal chief commissioner of income-tax in the two States S P Choudhury said State-owned NMDC Limited and Andhra Bank have been the top corporate tax payers in the region. “For 2018-19, the target for the region is Rs 60,845 crores as against Rs 49,775 crores during 2017-18. As many as 8,13,759 new returns were received from the region and the target for the current fiscal is 10.13 lakhs,” he told newsmen. The region had 36.1 lakh tax payers last year.

  • Jul 21, 2018
  • Income Tax to add 1.25 crore tax filers this fiscal

    The Central Board of Direct Taxes (CBDT) has set a target of adding 1.25 crore income tax return filers for the current fiscal. This was declared by the policy-making body for the income tax department (ITD) as part of its central action plan for 2018-19. The document said the department had added about 1.06 crore filers (persons who were not included in the filer base at the beginning of the year and had filed returns during the year) during the fiscal year 2017-18. According to the ITD website, 6.74 crore taxpayers filed returns in FY18.

  • Jul 12, 2018
  • HSBC Geneva a/c case: ITAT sends back case involving NRI for further investigation

    The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has sought further investigation into one of the cases linked to HSBC’s Geneva branch involving a US-based NRI, Rahul Rajnikant Parikh. A list of people of Indian origin having bank accounts in Geneva was handed to India by France in 2011. More than 1,000 deposit holders of Indian origin in HSBC’s Geneva branch are under the scanner of tax and other investigating agencies for holding black money.

  • Jul 10, 2018
  • I-T dept sells part of Cairn Energy's shares in Vedanta to recover tax dues

    The Income Tax department has sold a portion of Cairn Energy’s shares in Vedanta Ltd in a bid to recover some of the tax dues. In a statement to the exchanges, Cairn Energy said, “Cairn has now been notified by the IITD (Indian Income Tax Department) that it has sold part of Cairn’s shareholding in VL (Vedanta Ltd), realising and seizing proceeds of $216 million. Following this sale, Cairn’s retained holding in VL is now approximately 3 per cent. It is possible that the IITD may make further sales.”

  • Jul 05, 2018
  • I-T refunds worth Rs 70,000 crore issued, 99% claims processed: CBDT

    Income Tax refunds worth over Rs 70,000 crore have been issued to the taxpayers and nearly all refund claims pending as on June-end has been processed, the Central Board of Direct Taxes (CBDT) said today. The Income Tax Department had observed a dedicated fortnight from June 1-15, which was later extended to June 30 in certain regions, to expeditiously clear pending matters of appeal effect and rectification. More than 20,000 such matters were disposed of and refunds were issued to the taxpayers, wherever due.

  • Jul 05, 2018
  • I-T's record recovery of Rs 1 trn contributes 10% to direct tax collection

    The income tax (I-T) department made record recoveries of Rs 1 trillion in 2017-18, contributing 10 per cent to the total direct tax collection last financial year. In a first, the department resorted to a slew of coercive measures like selling assets, which resulted in 33 per cent growth in arrears and tax recovery, the highest-ever, according to I-T officials. In 2016-17, growth in recoveries was 10 per cent at around Rs 750 billion. Besides selling movable and immovable assets to make recoveries, taxmen filed prosecution cases against those not paying the demand.

  • Jul 05, 2018
  • IT companies to benefit from currency, lower visa applications in Q1

    The recent currency fluctuation is expected to show some positive gains for the IT sector in their first quarter (Q1FY19) results starting next week. The June quarter results of IT firms usually witness a strong impact of employee costs in the form of visas expenses as well as incremental wages. However, given the lower visa applications this year as well as a slowdown in hiring, these impacts won't be that evident this year, note analysts. The impact of visa issues might also manifest in hiring numbers for these companies.

  • Jun 30, 2018
  • Q1 numbers: PIT advance tax up 44%, indirect taxes up sharply

    The Centre’s fiscal deficit in April-May stood at 55.3% of Rs 6.24 lakh crore estimated for all of 2018-19, compared with 68.3% of the relevant annual estimate in the year-ago period, in what reflected a relative moderation in front-loading of revenue spending. Indirect tax receipts, a proxy of consumption in the economy, grew at robust 59% in the two-month period; however, huge corporate tax refunds led to a year-on-year decline in direct tax collections.Union minister Arun Jaitley wrote in a blog that “the first big news for this year is that the advance tax deposit during the first quarter of this year has seen a gross increase of 44% in the personal income tax category and 17% in the corporate tax category”.But the minister added that after repayment of refunds due to some excess tax paid in earlier years, usually paid back in the first quarter, the net advance tax amount would be somewhat less. “But if the same trend continues in the next three quarters, one expects a significant increase in the direct tax collection this year,” he wrote.

  • Jun 30, 2018
  • Jubilant Foods will have to pay 10% tax on royalty, says ITAT

    The Income Tax Appellate Tribunal (ITAT) has rejected tax officials’ demand of a 40 per cent tax on sales at Jubilant Foods stores, and instead allowed the chain to pay 10 per cent tax on royalty. Jubilant Foods runs the chain of Domino’s Pizza stores in India.The issue relates to permanent establishment (PE) of multinational corporations (MNCs) when these companies have a franchisee agreement with Indian players. The ITAT has turned down the revenue department’s appeal that Jubilant Foods constitutes a permanent establishment of US-based Domino’s Pizza .

  • Jun 30, 2018
  • Cos' directors to furnish personal mobile numbers for verification: Govt

    Directors at companies will soon be required to share their personal mobile numbers and e-mail ids with the government as part of verifying their credentials, amid continuing efforts to weed out bogus directorships.In a significant move, the corporate affairs ministry has decided to carry out KYC (Know Your Customer) process for all directors, including those who have been disqualified.A new electronic form is set to be introduced specifically for the directors through which all required details have to be submitted to the ministry, according to a communication.

  • Jun 30, 2018
  • Can’t levy local taxes on MNCs using franchises, rules Income Tax tribunal

    In what could bring relief to MNCs operating in the country using the franchise model, the Income Tax tribunal has ruled that such companies cannot be deemed to be located in India, meaning they don’t have a permanent establishment to be levied local tax rates. Giving its ruling in the case of Domino’s Pizza, the Mumbai bench of the Income Tax Appellate Tribunal held that the firm is a US-based company and cannot be subjected to Indian taxes.Permanent establishment, or PE, is a thumb rule used by the tax department while deciding whether a company can be taxed domestically and at what rate. The difference between tax rates for a domestic company and a foreign firm can be as much as 30%.

  • Jun 28, 2018
  • Govt to ask CAs to update information on directors during filing of annual results

    In its bid to crack down on shell companies, the Ministry of Corporate Affairs (MCA) will soon ask the company secretary and chartered accountant of the companies concerned to update the information related to their directors at the time of filing of annual results, a senior MCA official said.The information will include details such as passport, PAN number and contact details along with the physical address of directors.The official said the ministry is expecting more than 30 lakh companies and directors to register.Earlier this month, the task force on shell companies identified 2.25 lakh companies as shell firms. These companies are being struck off under section 248 of the Companies Act 2013 for not filing financial statements for 2015-16 and 2016-17.The Registrar of Companies is in the middle of issuing notices to these entities, and if they fail to file returns over the next few months, they may get de-registered.

  • Jun 28, 2018
  • India finally brings clarity on income tax computation for foreign firms

    The government has notified rules for computation of income tax for foreign companies if they have place of effective management in the country. According to tax experts, it brings clarity on various aspects of the new place of effective management (POEM) regime.Central Board of Direct Taxes (CBDT) has notified a mechanism for calculation of written-down value, and computation of brought-forward loss and unabsorbed depreciation.It has said a company would continue to be treated as a foreign company even after it becomes resident in India."The notification has provided clarity to the foreign companies which shall be considered as a resident in India owing to its POEM being in India,” said Rakesh Nangia, managing partner at tax consultancyNSE 0.00 % Nangia Advisors LLP. “It provides guidance in case any conflict arises in the application of provisions of the Act to such foreign company qualifying as a resident company vis-à-vis a domestic resident company,” he said.

  • Jun 27, 2018
  • Say goodbye to share certificates, you have time till December to go demat

    The mouse that had quietly entered the Mumbai bull-ring more than two decades ago has taken about a quarter of a century to put the paper scrip finally out of business.About 2.3 per cent of India’s $2-trillionplus market capitalisation is still held in the form of physical stock even more than two decades after Mumbai exchanges went online. Holders of these shares in listed companies now face a December deadline to convert them into dematerialised form if they have to transfer or sell them.The Listing Obligations and Disclosure Requirements (LODR), which the market regulator tweaked earlier this month, have made the conversion mandatory for all classes of investors. Many investors, especially senior citizens, still hold shares in physical form.

  • Jun 27, 2018
  • GST provisions on TDS/TCS, reverse charge mechanism deferred by 3 months till September

    The revenue department has decided to keep in abeyance GST provisions relating to reverse charge mechanism, tax deducted at source (TDS) and tax collected at source (TCS) for another three months till September-end. The GST Council in its meeting on March 10 had suspended the provision for deduction of TDS and collection of TCS, as well as the implementation of the reverse charge mechanism (RCM) till June 30.A senior revenue official said the GST Implementation Committee (GIC), headed by the Revenue Secretary, has decided to keep in abeyance the TDS/TCS provision and GST by way of RCM by another three months. “The GIC has decided to postpone by three months the TDS/TCS and RCM provisions. Notification will be issued shortly. The GIC decision has been circulated to the states for issue simultaneous notification, the official told PTI.

  • Jun 26, 2018
  • Benami properties of Rs 43 bn attached; Jaipur and Mumbai top the list

    The income-tax (I-T) department has attached over 1,500 unaccounted properties worth Rs 43 billion across the country within one and a half years of the introduction of the revised benami legislation. Jaipur and Mumbai top the list, with attachments of 200 properties each.Patna has seen the least number of attachments at 30, followed by Lucknow at 50, while in Kolkata, Chandigarh, and Hyderabad, 144, 110, and 100 properties got attached, respectively, says a finance ministry official. “The I-T department has worked swiftly in identifying benamitransactions since the enactment of the revised legislation. Over 1,500 properties have been attached so far. Many are on the radar.

12345678910...